Mohawk Industries, Inc., has entered into an agreement to buy Spano Invest NV, a Belgian panel board manufacturer, for $168 million in cash.
Mohawk said today that it expects the purchase should be completed in the second half of 2013 and will add slightly to Mohawk earnings this year. Spano's 2012 revenues are estimated at approximately $231 million.
Spano manufactures and distributes chip and melamine board, which are used to produce furniture and building products primarily in the Belgian market. Spano became a leader in the chipboard industry in 1977 when it introduced the first continuous press operations, significantly increasing its production capacity. Spano operates facilities in Belgium and has an electricity plant joint venture that converts waste wood into green energy.
"Spano expands not only our customer base with a focus on different channels of distribution, but also our knowledge and technical expertise, which we can leverage," said Jeffrey S. Lorberbaum, Mohawk's Chairman and CEO. "Together, there are many opportunities to optimize manufacturing assets, raw materials, and production efficiencies."
Read more in Tuesday' Times Free Press